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Date: Wed, 13 Mar 2002 08:58:02 -0500
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Dear list,
I just found this list over the Web despite the fact that we have been
living in the Boston area for 3 years. The question I have is tax related
(what else;-) and I apologize if the topic I raise has already been
discussed in this list.
I am Swiss Citizen under H1-B VISA status (in 2nd 3 year period) and
therefore a guestworker in the US or in more official terms a non-resident
alien. My wife and I plan to return to Europe (maybe Switzerland) within
the next 2 years. We will not try to obtain a Green Card for the rest of
our stay in the US. As part of the move we will sell our house in the
Boston area. Because we expect gain on the house sale we are wondering
about possible tax implications.
The US Federal Tax Code Paragraph 2444 allows the exclusion of gain on the
principle residence, meaning that you don't have to file gain as income up
to $500k (if you file jointly) if you sell your primary residence (house).
This paragraph relates to paragraph 4665 in the case of expatriation. But
paragraph 4665 only talks about US citizens and long-term US residents but
says nothing about non-resident aliens.
Therefore my questions:
Under the current code will we have to pay taxes on the house sale (gain)
or not? What is the reasoning behind the answer?
Some things coming to my mind:
Can a non-resident alien have a primary residence in the US in the first
place? It could be that the term "primary residence" only applies if the
owner is a US resident. Otherwise his primary residence would be outside of
the US meaning that I have to pay taxes because I would sell my secondary
residence and not the primary and so forth ...
Thanks so much for any help on that topic.
Michael
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Received on Wed Mar 13 2002 - 16:48:16 PST
